Today in the mail I received a letter from American Express about that card. It says that it must be "responsive to the business and economic environment" and, as a result, "found it necessary to increase rates and fees on some of our products." This translates into the following three changes:
- Raising (my) APR on purchases and cash advances.
- Raising (my) APR on any balances that have a penalty rate due to late payments.
- Increasing (my) late fee.
I'm sure my wife can verify it for you, but I'm fairly certain I got my "crazy-eyed" look upon reading the letter. I became rather incensed. I immediately called to cancel the card.
Scott, my AmEx Cust Rep, spoke well, thanked me for being a customer since 2007 (note that I got the card before I met my wife, which happened in 2005-- not sure why his information was so wrong), apologized for past poor customer service, and tried to explain to me that these changes were across nearly all product lines (I noted that it was for every standard, blue, and non-platinum/black version of AmEx--when those who have the platinum/black cards are the most likely able to afford rate changes). He also tried to explain that AmEx was simply trying to stay financially viable.
What Scott, and the rest of American Express, simply cannot understand is that I'm not responsible for their poor financial decisions that caused them to be in these straights. And, because I am not responsible for it, I refuse to bear the burden of them righting their ship. Had they not made bad choices of who to give home loans and credit cards to, they wouldn't be in the troubles they are. I was responsible with my credit card and I didn't have a home loan; not my problem to fix.
Secondly, AmEx, and a lot of Credit Card companies, don't seem to understand that you get out of a recession by spending money. Had they kept my APR low and my fees reasonable, I would have been encouraged to spend more, putting money on my card and paying my fees to their company-- and they would make money off of me. By raising my rates, I have canceled my card and now they will get absolutely NO money from me ever again. How does that help them to become financially viable?
I was happy with American Express up until I moved to SJ. On the trip here, I had multiple issues with the card even though I had told them I planned to drive across country and use that card as my primary financial resource. Then I had that issue with them telling me to pay one amount and then being told that was the incorrect amount and, oh by the way, we won't tell you that, even though it is our fault your payment wasn't the right amount, this will cause your rate to go from 9.99% to 27.99% and we'll lop $5,000 off your credit limit.
If American Express had provided me even the minimum level of customer service on any of these issues, I would probably let this go and continue being a member. But the repeated issues with their customer service, their continued insistence that I pay for their bad financial decisions, make me not only not want to be a customer, but to actively campaign against others being a customer of American Express. I hope to convince at least one more person to cancel any and all relationships with the company. As the company bleeds customers, they will make the unwise decision to raise rates yet again to cover their costs and they will bleed more customers. And all because they didn't realize that without customers they don't have a business. Treat the customer right and you've got a customer for life. Treat them poorly and you don't have a business.
And the last sentence of the letter says, "We look forward to continuing to serve you."
No, no thank you. I've been served quite enough by you. My ass is sore, I'm going home.
Good job of not taking it anymore: business fail because they deserve to fail. Often it's because their primary motivation is profit, not people and, as you illustrate so well, a business that depends on customers cannot continue without excellent customer service!
ReplyDeleteI read an article on MSN that says Bank of America is the top-rated WORST bank when it comes to both customer products/support and customer service. Imagine that: American Express is THEIR credit service!
The "loan shark" mentality of some businesses is astounding: any time an interest rate goes above 10$, only those whose lives depend upon credit will continue to live on credit. Which part of that don't these financial institutions understand?
Okay, so that should have been 10%: I hit the wrong key and didn't catch it.
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